US Dollar vs CAD (FX:USDCAD)
3 Months : From Nov 2019 to Feb 2020
The U.S. dollar drifted lower against its most major counterparts in the Asian session on Thursday, as the U.S. Federal Reserve left interest rates unchanged and signaled that the interest rates would remain on hold throughout 2020.
The Fed maintained the target range for the federal funds rate at 1-1/2 to 1-3/4 percent following three straight quarter-point reductions.
The Committee assessed that the current stance of monetary policy is appropriate to support a sustained economic expansion, strong labor market conditions, and inflation near its symmetric 2 percent objective.
Economic projections provided by the Fed along with the decision show a majority of FOMC participants expect interest rates to remain unchanged throughout 2020.
In his post-meeting press conference, Fed Chairman Jerome Powell suggested he would not consider raising rates until inflation picks up significantly.
Investors also looked ahead to developments on the U.S.-China trade front as a fresh round of U.S. tariffs on Chinese goods are set to kick in on December 15.
The greenback weakened to 0.9816 against the franc and held steady thereafter. The pair had ended Wednesday's deals at 0.9829.
The greenback dropped to 1.1144 against the euro, compared to Wednesday's closing value of 1.1129. The greenback is seen locating support around the 1.14 region.
The greenback fell to 1.3230 against the pound, a level unseen since March 25. The next likely support for the greenback is seen around the 1.34 level.
Survey data from the Royal Institution of Chartered Surveyors showed that UK house prices declined at the fastest pace since April as uncertainties from Brexit and general election weighed on the property market.
The house price balance fell to -12 in November from -5 in October.
Reversing from a high of 1.3179 hit at 6:00 pm ET, the greenback edged lower to 1.3163 against the loonie. On the downside, 1.30 is possibly seen as the next support level for the greenback.
The greenback ticked down to 0.6889 against the aussie, from a high of 0.6868 seen at 6:15 pm ET. The greenback may challenge support around the 0.71 mark.
Although the U.S. currency dropped to a session's low of 108.46 against the yen, it recovered shortly. The USD/JPY pair rose to 108.61 and the next resistance level is seen at 111.00.
Data from the Cabinet Office showed that Japan core machine orders fell a seasonally adjusted 6.0 percent on month in October - coming in at 798.8 billion yen.
That missed forecasts for an increase of 0.7 percent following the 2.9 percent decline in September.
Looking ahead, German consumer price index for November is scheduled for release at 2:00 am ET.
At 2:30 am ET, Swiss producer and import prices for November are due.
The Swiss National Bank's monetary policy announcement will be out at 3:30 am ET. Economists widely expect the central bank to maintain policy rate at -0.75 percent.
Eurozone industrial production for October is set for release in the European session.
The European Central Bank will announce interest rate decision at 7:45 am ET. The ECB is expected to hold its main refi rate at a record low zero percent and the deposit rate at -0.50 percent.
Canada new housing price index for October, U.S. producer price index for November and weekly jobless claims for the week ended December 7 are due in the New York session.
Bank of Canada Governor Stephen Poloz will give a speech about Canada's economic outlook for 2020 at the Empire Club of Canada in Toronto at 12:30 pm ET.